IVE Group Limited (IGL) Earnings Call Transcript & Summary

Thank you for standing by, and welcome to the IVE Group Annual General Meeting. [Operator Instructions] I would now like to hand the conference over to Geoff Selig, Chairman of the Board of IVE Group Limited. Please go ahead.

Thank you, and good morning. I'm pleased to welcome everyone in attendance today at our Annual General Meeting of the Shareholders of IVE Group. It's now 10 a.m. in Sydney. We have a quorum of members present so I declare the AGM open. Joining me today is our CEO, Matt Aitken; our directors, Gavin Bell; Sandra Hook; James Todd Paul Selig, and Cathy Aston. We also have Darren Dunkley, our CFO and Joint Company Secretary; and Sarah Prince, Joint Company Secretary as well. Also welcome representatives and our host, our auditors from KPMG, who will be available to answer any questions you may have about the conduct of the audit. We're also very pleased to welcome those of you participating online through our virtual meeting platform provided by our share register, Link Market Services. All attendees can watch a live webcast of the meeting. And in addition, shareholders and proxy holders have the ability to ask questions and submit votes during the meeting as would be the case for a physical meeting. We hope that holding a virtual meeting will assist to further curb the spread of COVID-19 virus and encourage greater participation and engagement amongst our shareholders. If we do experience any technical issues, a short recess or an adjournment may be required depending on the number of shareholders being affected. If this occurs, I'll advise you accordingly. Before we move to proceed with the formal business of the meeting, I'll give a brief address and then ask our CEO, Matt, to also address you. Voting on the resolutions will be conducted by way of poll. In order to provide you with enough time to vote, we will shortly open voting for all resolutions. You will be able to vote online at any time from the opening of voting, which will occur shortly and the closing of voting as announced at the end of the meeting. Once you've registered, your voting card will appear with all of the resolutions to be voted on by shareholders at the meeting as set out in the notice of meeting. To cast your vote, simply select one of the options. I now declare voting open on all items of business. Feel free to submit your votes at any time. I'll also give you notice before I move to close voting at the conclusion of all items of business. After Matt's presentation, we will formally step through each of the voting resolutions. And following the voting, any general business questions will be taken. If you have a question you'd like to ask today, there are 2 ways to do so. Shareholders participating online through the virtual meeting website can submit their questions online. [Operator Instructions] Questions can also be asked via the moderator for those using the telephone option. [Operator Instructions] Please note that while you can submit questions from now on, we will not address them until the relevant time in the meeting. Please also note that your questions may be moderated, or if we receive multiple questions on the same topic, amalgamated together. Finally, due to time constraints, we may run out of time to answer all of the questions that may be asked today. We will take -- we will first take questions from shareholders using the online platform and then move to take questions received over the phone. So that is it in terms of the meeting protocol, just moving to a few remarks from my perspective, and then I'll hand over to Matt. Well, it's fair to say that our centenary as a business, which commenced in March of this year has thus far not unfolded quite as we had expected as a result of the disruption of COVID. We certainly look forward to appropriately marking this occasion and milestone for our business with our staff and clients at some point over the coming months. If we look at our financial performance and notwithstanding the impacts of the pandemic across multiple parts of our business over the entire year, we're pleased with both our outstanding operational performance and solid financial results. We exceeded our earnings guidance at $100 million -- $100.2 million EBITDA, improved our margins despite reduced revenue and had an 8.4% EPS growth year-on-year. That excludes any of the impact of the federal government's JobKeeper support. Importantly, our balance sheet strengthened on the back of strong underlying cash generation and the divestment in October 2020 of our outbound call center business for consideration of $16.5 million. Net debt was reduced by $59.8 million through the period over -- through the last 12 months. And with a cash balance of $107 million at 30 June, the Board made a decision to pay down $50 million of our senior facility, which we subsequently did on the 6th of August this year. Following the suspension of dividends last year as a precautionary measure given the prevailing uncertainty resulting from the pandemic, we resumed the payment of dividends in H1 FY '21, resulting in a full year dividend of $0.14 per share fully franked. Notwithstanding the company did not pay a dividend for the entire year as a result of the panic -- the pandemic, the solid financial performance of the business since listing in December '15 has enabled us to pay $92 million in fully franked dividends to shareholders. The share buyback that was actioned in November 2020 has resulted to date in the company acquiring 5.4 million shares at a total cost of $7.4 million. This represents 3.6% of the issued capital of the company. And in recognition of the extraordinary efforts of our employees, approximately 1,600 of them, over the last 18 months, the company issued 500 IGL shares to every employee on the 5th of October this year. The company remains well capitalized and highly liquid. The strength of our balance sheet places us in a strong position to actively pursue growth opportunities consistent with our ongoing and previously articulated strategy to evolve and expand our value proposition we take to market. And whilst observing our stated leverage ratio of 1.5x pre-AASB 16 EBITDA, we currently have $30 million to $40 million in available capacity to pursue targeted earnings accretive opportunities. Matt will touch further on this shortly. And the recent acquisitions of Active Display Group and AFI announced recently at an attractive multiple, represent the initial deployment of this available balance sheet capacity to drive growth initiatives. In addition to a range of organic growth initiatives, we would anticipate further attractive acquisition opportunities will present over the next 12 to 24 months. Over the last year, we've experienced a meaningful increase in interest from our clients, investors and our Board regarding environmental, social and governance, ESG issues. We recognize these developments and are taking proactive steps to mature and define our approach further, meet expectations and adapting to changes in the landscape. Over the coming months, we are embarking on the next stages of our ESG journey, and we'll welcome feedback and participation from all stakeholders. This work will result in the development of a robust and transparent ESG framework underpinned by commitments and actions, and we look forward to sharing our progress at future reporting and communications. Thank you to our CEO, Matt Aitken, for his continued outstanding leadership of our business, to our CFO, Darren Dunkley, likewise and the entire leadership team and management team for their never-ending commitment and to all of our dedicated staff for what was a huge effort throughout the most demanding year the business has ever experienced. We welcomed Cathy Aston to the Board in December of last year. Cathy also taking on the role as Chair of our Audit Risk and Compliance Committee. We're most fortunate to have a very cohesive and diverse Board, all of whom have stewarded the business very well through this COVID pandemic. Thank you to my fellow directors, Paul Selig, James Todd, Sandra Hook, Gavin Bell and Cathy Aston for your ongoing contribution expertise and support, particularly over the last 18 months. As I reflect on the extraordinary year we've just been through and in the context of it also coinciding with our centenary as a business, it's reaffirmed my and our optimism that as we emerge from the COVID-19 pandemic, the solid fundamentals of our business place IVE in a position of strength from which to continue growing and evolving over the years ahead. Thank you very much. I'll now hand over to our CEO, Matt Aitken for his address to the meeting.

Thank you. Thanks, Geoff. Good morning. It's my pleasure to speak with you this morning. In my presentation today, I'll recap the FY '21 results, provide FY '22 trading update for the first 4 months of the current financial year and talk about the year ahead. If we can flip to the next slide, please, the content slide. In the following slide, that's it. Thank you. Some of the content will already be familiar to some of you as we covered it in the release of our full year results only 12 weeks ago, so I'll move through those sections quickly and focus more on FY '22. Next slide, please. Geoff has already covered a number of the key metrics on this slide. And as you can see, notwithstanding the impacts of COVID-19, our performance for the year was very solid. Earnings of $100.2 million at the upper end of our guidance, which was $98 million to $100 million and strong cash flows delivered increased balance sheet strength, which illustrates the underlying resilience of the business. Next slide, please. Margin growth continued to improve despite reduced revenue with much of this achieved reflecting our cost base and management of our supply chain. I'm also very proud of the contributions made by all of our 1,600 staff in the year as they responded to an unprecedented and volatile operating environment. We really do have an awesome team. During the year, we executed on 2 key strategic initiatives. The first being the divestment of IVE Telefundraising in October, the details of which Geoff has already referenced this morning, and the second being the commitment to a long-term contract with ACM, Australian Community Media, which included the acquisition of their production operation in Western Australia. Since buying the Western Australian operation, it has performed very well, and we are very fortunate to have a great team over there. We have also been able to transition some of our volume from our East Coast operations to WA to better service our national clients. Next slide, please. The strengthening of the balance sheet is one of the real highlights for F '21 with strong cash flow generation and operating cash flow of 131%. Net debt was reduced by almost $60 million to $77.3 million, and cash on hand at 30 June was $107 million. And since the end of the financial year, we have repaid $50 million of our senior debt facility. We have also continued to focus on improving shareholder returns with EPS growth over PCP of 8.4% and the resumption of dividends in FY '21 with a final dividend of $0.07 per share, fully franked, taking the full year dividend to $0.14 per share fully franked. As you would also be aware, the company announced a share buyback in November 2020, as Geoff has mentioned this morning, and we have used $7.4 million of our funds to acquire 5.4 million shares through that period of time to the end of the 25th of August. Next slide, please. Throughout the year, IVE continued to benefit from its differentiated value proposition and a loyal, strong and diversified customer base. From a retention perspective, we provide a continuity of service and supply to all customers throughout the pandemic with no COVID-related operating issues at any of our sites. We continue to grow our share of wallet across our customer base as we sell more of our products and services to our 2,800 clients. And our long-term track record of retaining clients ensured more than $100 million in contract renewals was achieved across a multitude of clients. And more importantly, there were no material customer loss at all in FY '21. From a growth perspective, there was continued focus on growing market share through harnessing the power and uniqueness of IVE's go-to-market proposition. New business across all parts of the business was strong. And despite the challenges of COVID, $58 million of new clients were onboarded into IVE. Pleasingly, the strong new business momentum has continued into FY '22 with a number of key wins already, and these include, amongst many others, Aldi supermarkets for the distribution of their catalog nationwide and a significant expansion of our relationship with API, Australian Pharmaceutical Industries, which are better known as one of the -- through one of their key retail brands being Priceline Pharmacies. We are very fortunate to have a strong, reputable customers, and we are very grateful for their ongoing support. Next slide, please. From a revenue diversification perspective, executing our strategy has resulted in increased diversification of revenue streams, broader client relationships, and it also provides a level of margin protection. Quarterly the ongoing sustainability of our business is the value proposition we take to market, ensuring we remain relevant by closely aligning to our clients' evolving requirements. A large proportion of our clients engage us across multiple parts of our business. And you can see how the product and service capability on the right-hand side of this slide illustrates the natural connection between our value proposition and the client's marketing needs. We expect revenue growth across all parts of the business in a post COVID-19 environment and are ideally positioned to capitalize on opportunities and to grow market share across multiple sectors. As we consider organic and inorganic strategic initiatives, I would expect you will see further diversification of our revenue mix. Next slide, please. A clearly defined and well-executed strategy has resulted in a resilient business with diversified revenue streams well positioned to pursue growth initiatives. The diversification of our offering has been the cornerstone of our strategy for over 20 years. And we will continue this strategy through actively pursuing growth opportunities. IVE's balance sheet strength will support investment of $30 million to $40 million in growth initiatives, and these growth initiatives will target a minimum ROFE of 15%. There are a range of initiatives and opportunities for the company to pursue, which include enhancing and amplifying our Lasoo digital catalog aggregator platform, complementary adjacencies from an acquisition perspective, and these will be areas such as fiber-based packaging, third-party logistics and the opportunity to bolster our existing businesses with further bolt-on acquisitions as we go through the coming 12 to 24 months. Next slide, please. As I just outlined on the previous slide, the company intends to pursue a range of strategic initiatives, and one of those is the expansion of our existing digital offerings, which are already broad and significant. In FY '22, we will be investing $3.5 million in enhancing and amplifying the Lasoo platform that we acquired in early 2020. Lasoo is one of the largest digital catalog consumer platforms in Australia. It has a loyal and active consumer following, as illustrated by some of the statistics on the slide here, along with a diverse and growing base of Australian leading -- Australia's leading retailers. This provides a solid foundation as we invest further to improve the consumer experience, enhance the consumer engagement with catalogs and work with our retail clients to unlock opportunities to drive further revenue and commercial benefit for their business. It also provides further opportunity to expand our digital offering across our 2,800-strong client base and even more so, the 400-plus retail clients that IVE Group has. The enhanced platform will be launched in the first half of 2022, and we will provide a further update at the release of our half year results in February. Next slide, please. These results for the first 4 months are particularly impressive from my perspective when you consider the 2 -- that 2 of our major operating markets, being New South Wales and Victoria, have been locked down for the majority of this period, unlike the same time last year when extended lockdowns were more specific just to Victoria. In the first 4 months of FY '22, we have seen strong recovery and momentum across the business with revenue up 9% over PCP. EBITDA and NPAT up 32% and 75%, respectively, on PCP, demonstrating heightened operating leverage across the business as highlighted in the FY '21 full year results. Cash on hand at 31 October 2021 is $42 million, post repaying of the $50 million in senior debt facility I spoke to earlier, and net debt at 31 October 2021 of $89.7 million. I would note that the revenue, EBITDA and NPAT have been normalized for our Telefundraising business, which we divested last year, as we've spoken to. EBITDA is on a pre-AASB 16 basis. And EBITDA and NPAT exclude FY '21 JobKeeper receipts. With the majority of our workforce in these 2 markets impacted by the lockdowns, I'm particularly proud of how they have responded to the disruption and challenges at both the personal and professional level throughout this period to deliver this result in the first 4 months of FY '22. Next slide, please. The current global supply chain disruptions are having a dual effect on the business. We continue to benefit from companies onshoring work of bringing work from offshore back onshore into Australia, where it has been previously produced offshore, and that is in order for them to guarantee supply into the local market. This is presenting a number of meaningful new business opportunities, particularly with global brands that have historically relied on global offshore supply chain solutions. At the same time, however, paper prices have moved to the top end of their long-term historical range, driven by the tightening of supply, increases in pulp costs and well-documented increases in global energy prices and shipping costs. Our expectation is that the price pressure will continue throughout 2022. These price movements do not affect the whole business. They predominantly impact our web offset printing division. In response, we have moved quickly to shore up supply and believe it is prudent to increase our paper inventory holdings as we foreshadowed at the time and the release of our full year results in August. IVE has long-term strong relationships with all major international paper suppliers. We're working closely with our clients to manage and mitigate the flow-through cost of adjustments as required, and we are confident that the majority of these recent paper cost increases will be passed through to clients in the course of time. Next slide, please. In terms of major initiatives for H2, Geoff has already touched on the acquisition of Active Display Group and AFI Branding. The acquisition was completed on the 1st of November for consideration of $6.5 million, $5.2 million of the consideration was paid on completion, with $1.3 million of the total payable as deferred consideration based on the achievement of agreed revenue targets over a 24-month period. The acquisitions are expected to contribute annual revenue of approximately $45 million, additional EBITDA of $6.5 million and NPAT of $4 million or $0.028 per share, post the full integration of both ADG and AFI into IVE's existing operations. The integration of both businesses has already commenced, and we will complete this by the 30th of June 2022. And these acquisitions significantly expand our third-party logistics capability and our retail display businesses as well as further diversify our offering into fabric point-of-sale printing for retail and events and exhibitions through the AFI Branding acquisition. This is our first acquisition since the Salmat transaction in January 2020 and represents the company's initial investment and growth initiatives, as foreshadowed earlier in my presentation. In terms of an update post acquisition on the 1st of November, they have been very well received by staff and clients. The Active Display Group and AFI brands were both extremely well regarded by clients in the market. Staff are integrating into the business extremely well. We are near completion of the plan for the integration, and we would consider the business to be an excellent cultural fit with IVE. The sales teams across the group are already working together to identify cross-sell opportunities across the border group. And sales momentum across the businesses is particularly strong -- as strong, particularly in AFI, who are a leading supplier to the event sector which is expected to rebound in 2022. Next slide, please. We, for the last 2 years and the year ahead, have been undertaking a major consolidation program of our footprint in Victoria. It's important to note that IVE has duplicate operations for all parts of the business across both New South Wales and Victoria. This will result -- this consolidation program will result in having 2 main operating precincts across Greater Melbourne driving further efficiencies and enhanced client service. In the west of Melbourne, which is the photos that you can see on the screen at the moment, are our Sunshine facilities, which total about 52,000 square meters of space across multiple buildings on this precinct. And it is the home for were offset printing operations and letterbox distribution hub. If we move to the next slide, please. This slide talks to what we're currently undertaking out in Southeast Melbourne and Braeside, a precinct out there that will be spread across 4 buildings and also total 52,000 square meters in space. You'll see from the top right picture on the presentation, we've indicated where certain businesses are based in this precinct. Our sheetfed and digital printing and DDC operations that are currently in Clayton and have been there since 2006, will relocate to Building 1 in early 2022. That is about 18,000 square meters. Building 2, which is about 13,000 square meters, will be used for the expansion of our logistics and fulfillment business, and that will include the integration of ADG's, Active Display Group's 3PL operations, and construction of this building is due to complete by the end of January 2022. Our retail display business was relocated from Sunshine to Building 3 in late 2020. The Active Display group and AFI Branding Solutions point-of-sale side of their businesses will integrate into Building 3 as we go into early calendar 2022. And our integrated logistics and premiums and merchandising business was relocated from multiple buildings in Clayton to Building 4 in late 2019. So by the time we get through the first 3 to 4 months of next year, we will have completed what has been a significant consolidation process of our footprint in Melbourne. Next slide, please. The solid underlying fundamentals of the business, combined with the strength of our balance sheet, place IVE in an ideal position to deliver growth as we emerge from this period of COVID disruption. The financial performance of the business on revenue, EBITDA and NPAT for the 4 months to 31 October 2021 is significantly up on the same period last year. As illustrated in the FY '22 year-to-date results, heightened operating leverage across the business will underpin earnings growth as revenue returns. Strong revenue momentum continues, and we remain optimistic this will continue over the remainder of FY '22 -- of the FY '22 year, driven by post lockdown economic recovery. We will closely manage paper supply chain pressures, which we expect to continue through the balance of FY '22. And IVE is well positioned to pass through the paper increases to clients. But due to contractual timing differences, we expect a one-off NPAT impact of circa $2 million in FY '22 in relation to this. The recent acquisitions of Active Display Group and AFI Branding Solutions at a very low multiple represent the initial deployment of the $30 million to $40 million we have available to drive earnings, accretive growth initiatives. In addition to organic growth initiatives, we would anticipate attractive acquisitions, opportunities -- and opportunities will present over the coming 12 to 24 months. From a capital management perspective, the group will continue to maintain our strong balance sheet position. Our dividend policy remains unchanged, which is that we pay strong dividends at sustainable levels, targeting a full year payout ratio of 65% to 75% of NPAT. And the capital expenditure is still expected to be $10 million, excluding the Phase 1 investment in Lasoo of $3.5 million, and capital expenditure will continue at approximately 60% of annual depreciation. Next slide, please. This year, we celebrate our centenary as part of -- and as part of that, I would like to recognize and congratulate Geoff and Paul Selig for their vision and commitment to creating a business that their father, Gordon, and even more so, their father, Oscar, would be very proud of. Their guidance and leadership over many years, continues to position the company very well for the future. I'd also like to say thank you to the senior leadership team and our staff for their ongoing commitment and dedication to our customers and the business and to our Board for their continued support. Thank you, and good morning. I'll now hand back to Geoff.

Thanks, Matt. So we now come to the formal part of the meeting, matters requiring resolution which were outlined in the notice of meeting, dated the 22nd of October, which was circulated to all members. So I will take the notice of meeting as being read. The resolutions for consideration today may only be voted on by shareholders, proxy holders and shareholder company representatives. Moving to the resolutions, I would like to advise that I as Chair intend to vote all undirected proxies in favor of all resolutions, except for resolution #4. As each resolution is tabled, the slide will show the results of the proxy votes on the screen.

Before we move to the formal part of the meeting, are there any general questions that we've received via the online platform in relation to meeting procedure?

Chairman, there are no questions at this point.

And no questions over the phone? No?

There are no questions at this time.

Okay. So moving on. The first item is the consideration of the reports. The 2021 annual report contains the financial report, directors' report, independent auditor's report. A copy of the annual report was made available on the company's website and was also sent to those shareholders who requested it. The financial statements have been approved by the directors and audited by KPMG. At this time, I'd like to take any general questions or comments about the reports or for the auditor. I note that the auditor did not receive any written questions prior to the meeting. Do we have any questions via or anyone on the online platform?

There are no questions on the online platform.

Okay. And anyone via the phone?

There are no questions relating to this item.

Okay. Thank you -- So moving forward, we will now move to resolution #1. Given this relates to my own reelection as a director, I'll hand over to the Chair of our Remuneration and Nomination Committee, Gavin Bell, to chair this part of the meeting. Thanks, Gavin.

Thanks, Geoff, and good morning, everybody. The first resolution relates to the reelection of Geoff Selig as a Director. A detailed biography of Geoff is included within the notice of meeting. The resolution is set out on the screen. The directors, with Geoff abstaining, recommends shareholders vote in favor of Geoff's reelection. And I'll now take questions on this item of business received through the online platform.

There are currently no questions online.

And through the telephone?

There are no questions relating to this.

If there are no further questions, I now put to the meeting resolution 1, and here are the proxies. Thank you. Please now select either for, against or abstain for resolution 1 on the voting card. [Voting]

And I'll now hand back to Geoff to chair the meeting.

Thanks, Gavin. So moving on to resolution #2, election of Director, Catherine -- Cathy Aston. A detailed biography is included within the notice of meeting for Cathy. The resolution is set out on the screen. The directors, with Cathy abstaining, recommend shareholders vote in favor of Cathy's reelection. Are there any questions via the online platform?

There are no questions...

In the phone?

There are no questions relating to this item.

Okay. That being the case, I now put to the meeting resolution #2, and the proxies are on the screen. Thank you. Please now enter your votes for resolution #2 on the voting card. [Voting]

Moving to resolution #3, which relates to the adoption of the remuneration report, which is contained within the 2021 annual report, we'll take the remuneration report as read. In response to the first strike received at the 2020 AGM, the company has consulted with investors and proxy advisers to understand their views on the remuneration report. Representatives of the majority of shares, which were voted against adoption, have informed us that the reasons they voted against adoption were not primarily related to the remuneration report. We did, however, receive some constructive feedback from a limited number of shareholders and proxy advisers in relation to the remuneration report. Key aspects of this feedback and the actions we proposed to take in response were outlined in the remuneration report and in the notice of meeting. Further details about the resolution are also contained in the explanatory memorandum that accompanied the notice of meeting. I'd also like to advise shareholders that I will disregard any votes as stated in the voting exclusion statement related to resolution 3 as set out in the notice of meeting. The directors recommend shareholders vote in favor of this resolution. And the resolution is set out on the screen. Do we have any questions through the online platform?

There are no questions on this item.

And the phone?

There are no questions relating to this item.

Okay. Thank you. So that being the case, I now put to the meeting resolution #3. Here are the proxies on the screen. Please now enter your votes for resolution 3 on the voting card. [Voting]

Moving to resolution #4, which is a conditional item being the spill motion. The adoption of the remuneration report contained in the company's 2020 annual report was not approved by more than 75% of votes validly cast on that resolution at the time. If at this AGM, more than 25% of the votes validly cast on resolution #3 are against the adoption of the remuneration report then the company's required to put the spill motion to a vote. To allow the company to progress the business of the AGM without the need for an adjournment to consider the results of resolution #3, the company will proceed to put the spill motion to a vote, as I said, on a conditional basis. A contingent poll will be held on that basis. The result of the vote of the spill motion will only be relevant if at least 25% of the votes validly cast on resolution 3 to adopt the remuneration report are cast against the resolution. If less than 25% of the votes validly cast on resolution 3 are against the resolution, there will be no second strike, and this resolution will not be relevant. The resolution will be deemed withdrawn and any votes cast on the spill resolution prior to the withdrawal of the spill resolution will be treated as invalid. The spill resolution will only be passed if an ordinary majority that is more than 50% of the votes validly cast are in favor of the spill resolution. If the spill resolution is valid and carried, a spill meeting must be held within 90 days of the passing of the spill resolution. Further information regarding the spill resolution and potential spill meeting were included in the notice of meeting. The directors unanimously recommend that shareholders vote against resolution #4. The Board considers that the current directors have the right mix of skills and experience to best govern the company. And the changes to the Board composition would be destabilizing, particularly for management. A spill meeting would likely cause significant distraction to the company and incur additional expenses in a period when the company needs to fully focus on meeting the challenges of the current business and post-pandemic environment. Resolution #4, the conditional item is now on the screen. Do we have any questions via the online platform?

There are no questions on this item.

And via the phone?

There are no questions relating to this item.

Thank you. The proxies are on the screen as we speak. And please now enter your votes for resolution #4 on the voting card. [Voting]

Resolution 5 relates to my remuneration so I'll once again hand over to Gavin to chair this part of the meeting. Thank you.

Thanks, Geoff. The next item of business is the approval of the issue of performance rights under the IVE Group equity incentive plan to Geoff. Further details about the resolution are also contained in the explanatory memorandum that accompanied the notice of meeting. The directors recommend shareholders vote in favor of the resolution, and the resolution is now set out on the screen. I'll now take questions from the online platform.

There are no questions on this item.

And from the phone?

There are no questions relating to this item.

And the proxies are now displayed on the screen. And I now put to the meeting resolution #5. Thank you. And if you could please now enter your votes for resolution 5 on the voting card. And I'll now hand back to Geoff. [Voting]

Thank you. So moving to resolution #6, which is the approval to issue securities under the IVE Group Equity Incentive Plan. The next item of business is the approval to issue securities under the IVE Group Executive Group equity incentive plan. If this resolution is approved by shareholders, issues of securities under the plan over the next 3 years will fall under the ASX Listing Rule 7.2 exemption 13 and will not affect the company's ability to separately issue up to 15% of the total ordinary securities in any 12-month period without having to obtain shareholder approval. Further details about the resolution are contained in the explanatory memorandum that accompanied the notice of meeting. The directors recommend shareholders vote in favor of this resolution, and the resolution is now set out on the screen. Are there any questions via the online platform?

There are no questions on this item.

And via the phone?

There are no questions relating to this item.

Thank you. I now put the meeting to the meeting resolution #6, if you could please enter your votes for resolution 6 on the voting card. [Voting]

That ends the formal resolutions of the meeting today. As we outlined at the beginning, we're now happy to respond to any further questions or general questions raised by anyone on the online platform or via the phone.

Chairman, we have 1 question from investor Mariano Castillo who says, acquisitive strategies are risky and few businesses make them. Your record since listing has been exemplary. Congratulations. Do you see our business continuing in this vein? Or do you see acquisitions stepping back a notch in the future?

Yes. Look, we've -- as Matt referred to in his report, the evolution and the growth and the diversification of the company has really taken place over the last 20 years from the late 1990s. And certainly, there's been a number of strategic and bolt-on acquisitions through that period. So to the specifics of the question, for us, we've had a very good track record on the acquisition front given the number that we've executed on. And the ADG and AFI acquisitions are a good example of an integration of the kind that we've done many, many times before and are very, very good at. I think I'd make the point that the $30 million to $40 million that we have foreshadowed or earmarked for accretive growth opportunities will be a combination, as Matt said, of organic initiatives like our investment in the Lasoo platform or other adjacencies and so on. But equally, we do see some opportunities, expect some opportunities to present for acquisitions. From our perspective, we will maintain our discipline and ensure if we do pursue a particular acquisition that it fits within the strategic framework that we've articulated in the past and that the commercial metrics stack up. And through all of this, we maintain a strong balance sheet. So yes, we would see some opportunities come on the radar to answer the question, but we'll do them as they come up.

There are no further questions at this time.

No questions via the phone?

There are no questions at this time.

Okay. Thank you. Well, look, that concludes the business as set out in the notice of meeting. Thank you again for your participation and attendance today. We will publish the results of the poll to the ASX later today. And on behalf of the Board of IVE, I'd like to thank you again for your support and now declare the meeting closed. Thank you, and good morning.